Halal Children Savings Accounts

Salams Both,

I hope its ok if i can reply, I am looking for a Children saving(investment or trust) as well.

I have googled around and found Child Trust Fund - Shariah by foresters - see below.

Has anyone use them? or know anything about it?

also there are Junior ISA accounts ( see two below.

From my understanding (Correct me please) the problem is after the child reach 18 the money is legally their and parents have no control?


What other options are there?

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Good find on Foresters. Will have to take a look.

Yes normally the money becomes theres upon turning 18.

I am open to this model or just a normal model in which the money & tax remains in my name.

There are under 16 savings accounts:

Child trust funds are stopped now though:

Excellent!! regular investment over a long investment horizon is the way to go :clap: :clap:

Point to note:

  • Asset Class: You have a very long investment horizon so should seriously consider investing in Equity fund(s).
  • Wrapper: Investing via Junior ISA will be tax beneficial as your child can have all the gains tax free when he/she reaches 18. The annual allowance is £9,000 for this year.
  • Keep your fees low - Do it for me or Do it yourself ?: There are ready-made portfolios available in the market as you mentioned/shared above. I have not seen all in details but the platform fee charged by some of them are in excess of 1%+ whereas which you can reduce it to 0.25% by investing your self with platform providers such as AJ bell. I am a big advocate of learning how to invest and do it yourself as you will save a lot in middleman fees and their longterm impact is quite high. See if you can spend a few hours and do it your self?. Suggest you see videos 2&4 in the Financial Education: Investment TIPS for Absolute Beginners


A simple DIY solution could be as follows (This is not a recommendation and you should do your due diligence)

  1. Know when you need your savings and want to see how much you need to save regularly?. In the gross annual interest rate field, you can assume a 5-6% growth for equity. You can come to this link say annually to see if you have to adjust monthly payments to reach to your goal.

  2. Open a junior ISA @ AJ Bell (They offer the most shariah-compliant funds that I am aware)

  3. Select a fund of your choice. you may find this thread useful. Personally, I would keep it very simple and similar to what redroseassurance are doing as shared by @Investor i.e. investing in the popular HSBC Islamic Global Equity Index “BD” fund. Considering a long term horizon, maybe allocating 10% to iShares MSCI EM Islamic UCITS ETF.

  4. Setup regular investing as a direct debit with the platform.

  5. Sit back and have loads of fun with the little one :slight_smile:

One last point…remember “It’s not about timing the market but its time in the market”: Stay calm and don’t do anything with the volatility in the market (even if it crashes in near future, it will more than likely be a winner in the end). Equity is volatile in nature but outperforms all the other asset classes in long run. Loving your long horizon :slight_smile:

Don’t hesitate to ask if you have any questions.

Good luck!



Assalamikum Zeeshan,

Thank you for your feedback and reply!.

Whats the difference between ‘IC’ and ‘BD’ in the HSBC fund?

HSBC Islamic Global Equity Index BD

HSBC Islamic Global Equity Index IC

As Wahed and Simply Ethical invest into the ‘IC’ not ‘BD’

JazakaAllah Khiran

Thankyou Zeeshan - great help.

Walikum as salam Investor,

IC = Accumulating share class denominated in USD
BD = Dividend paying/distribution shares class denominated in GBP.

You may find this thread useful around this fund Selecting an ETF

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Assalaamu alaykum Zeeshan,

JazakaAllah Khiran for that.

Is the ‘IC’ and ‘BD’ the same fund in a different class.

Sorry, silly question, what does it mean by class in funds? ( I understand ones is USD and other GBP)

Does the ‘IC’ and 'BD" have the same portfolio companies?

Does that mean ‘IC’ does not pay dividend?

For me as UK person, its just worth buy into ‘BD’ rather than ‘IC’ and not paying the 1% FX charge, if its the same fund itself?

Thank you

also, in the other post link you gave, you listed all companies in HSBC fund.

where did you get that from?


The funds can have different classes in different currencies and charges to cater to different audiences such as retail or institutional customers


It is an accumulating fund - the dividend is reinvested automatically.

Agreed - but you will have to reinvest the dividend manually or check with AJ bell if they can do it automatically on your behalf.

All the best

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Please note that is just for indicative purpose and a snapshot in time- The holdings keep changing in line with any changes to the Dow Jones Index it follows.

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JazakAllah Khiran :slight_smile:

Thanks for sharing this Zeeshan. Atm i am just putting funds into Wahed. Is what you suggested a better yield?


What i said that there are two approaches to investing - one is ready made portfolios and other is “do it your self”. the former will have additional fees and DIY approach will save a lot of money in long run.

Please go through my post again along with the educational link in it and decide for yourself as to which route you want to go ahead.

May Allah help you.

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There is now a “BC” equivalent to the HSBC Islamic Global Equity Index “BD” fund. This automatically reinvests dividend but there is a charge I believe but cheaper than manually investing from what I recall

Assalam Alaikum Zeeshan, don’t want to sound intrusive but is there a way to privately message you? Just wanted to check a few things with you please. I have never had any saving accounts so in a completely unfamiliar territory about all that is being discussed. However I just want to set a saving account for my 3 children so would like to have a understanding on all this please. JazakAllah in advance.

Walikum as salam Waqas,

Sure - Though it always helps others to benefit from members discussion in the group, however, if you prefer to check something privately then you can click on my name/picture and it will show you a “message” button that should allow you to send me a private message.

Asalaam hope everyone is fine.

Can anyone tell me that investing in foresters financial fund is halal? This is for childs ISA

I have copied this from they brochure

25% MSCI All Country World Index (ACWI) Net Dividends Re-invested (NDR) unhedged in Great British Pounds (GBP or
Sterling) terms
• 15% MSCI World Index NDR 100% hedged to GBP
• 10% FTSE All Share Total Return (TR)
• 5% MSCI Emerging Markets (EM) NDR in GBP terms
• 36% Barclays Global Aggregate Corporate Index 100% hedged to GBP
• 8% Barclays Global Aggregate Treasury Index 100% hedged to GBP
• 1% Sterling Overnight Cash Index